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The mild upside actions seen on the chart has taken gold towards the overbought areas. Additionally, the psychological level of 1500.00 represents a reasonable resistance. In general, trading below 61.8% of CD leg for the bearish harmonic structure makes us suggest potential downside wave, attempting to achieve more extended technical objectives for the harmonic formation. Note that, breaching 1513.00 over four hour interval or breaching 1505.00 with a daily closing could send the metal higher towards 1525.00 zones.
The trading range for today is among the key support at 1468.00 and key resistance now at 1525.00.
The general trend over the short term basis is to the upside, targeting $ 1600.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1500.00 gradually targeting 1488.00 and 1477, while the stop loss is a daily closing above 1505.00 might be appropriate.|